Democratic Progressive Party (DPP) has confessed to have solicited an advantage (bribe) from Pioneer Investments Limited, a company at the centre of controversy in the MK2.7 billion food rations deal.
The erstwhile ruling party has since apologized to Malawians for the action it took. Pioneer Investments Limited managing director, Zameer Karim, is currently answering court case on allegations that he inflated the amount of a contract with the Malawi Police Service to supply food rations within days of signing the contract.
Karima increased the amount by K466 million from K2.327 billion to K2.793 billion, allegedly due to exchange rate losses.
Interestingly, Karim deposited K145 million into a governing Democratic Progressive Party (DPP) account at Standard Bank whose sole signatory is former president Peter Mutharika.
In a statement released on Wednesday, DPP spokesperson Shadric Namalomba said the party regrets accepting the donation from the company and its subsequent error of judgment in swiftly refunding the money to Pioneer Investments Limited.
“Immediately after being aware of the above allegations, the DPP refunded the said sum of MK145 million to Pioneer Foods. Its willingness to refund the said money to Pioneer Foods, was out of regret for receiving money which was tainted with these serious allegations. On its part, YAS insisted that the DPP should pay the said sum of money to the Government Treasury,” reads part of the statement from Namalomba.
During its reign, DPP used to direct chief executive officers of both government entities and private sector players to fund the party.
